Precious Metals on the Move….but, in which direction?

Within the commodities complex, $Oil gained 0.4%, ending the week at $96.1 a barrel, whilst the price of Copper gained 2.3%. $Gold added 3.4%, ending the week at $1673oz, whilst the $Silver price jumped by 9.5%, to $30.6oz. The precious metals bulls are ecstatic over the “proposed” return to a $US gold standard, which is expanded on below.

 

 

Meanwhile it’s worth a peek at the past year or so performance of the two precious metals, plus those economic bellwethers, oil and copper and wonder why the bullish sentiment is so high.

The US Republican party is reportedly to look at restoring the link between the dollar and gold as part of its platform for the 2012 elections, according to the Financial Times. It reports that a call for a commission to look at this issue will be announced at the Republican convention, which is to be held next week in Florida. Although the commission would be able to make recommendations to politicians, but have no powers itself, it is part of a movement gathering momentum that wishes to see far greater transparency from both the Federal Reserve and the US administration in respect of monetary policy and even questions why we have central banks at all.

 

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